Stock investing isn’t an obvious solution if you’re concerned about climate change. It is possible to make your portfolio more sustainable with careful research and a well-thought out strategy. Some of the companies that are publicly traded are helping to improve the environment.
This creates an opportunity for investors interested in buying stocks that tackle the effects of climate change — and trust me, it’s a huge opportunity.
According to the energy company, decarbonization spending will surpass $100 trillion over the next thirty years. This amount of money could have a big impact on the global economy.
It’s difficult to overlook the amount of time and money governments around the world are spending to address this issue if you’re less inclined to believe the worst-case scenarios for climate change. The importance of taking action to mitigate the effects of climate change is reflected in this.
To find some of the best companies that are focused on fighting climate change, take a look at the seven companies below. These companies are leading the charge to combat climate change, and they are worth watching as potential investments.
7 Best Climate Change Stocks:
- Energy Recovery
- Brookfield Renewable Partners
- First Solar
- Microsoft
- Generac Holdings
- Ford Motor Co.
- NextEra Energy
1. Energy Recovery (NASDAQ: ERII)
Price: $22.09 (as of close Mar 1, 2023)
Market Cap: $1.237B
Environmental scientists are concerned about the impact of climate change on the world’s water supply. Climate change can cause water shortages in many parts of the world, which can have a devastating effect on local agricultural production and the people who rely on it. According to the United Nations, there will be a 30% increase in demand for water by the year 2050. Innovative solutions to manage water resources are needed to meet the rising demand.
Less than 1% of the Earth’s surface is suitable for drinking. Human activity and pollution make it unsafe to consume most of the remaining 99%. Desalination turns salty water into water. It provides a reliable source of fresh water for coastal communities. The process takes a huge toll on the environment.
It takes a lot of energy to desalinate. The cost of626.336 156.4644 L 630.568 147.5772 L 634.8 159.2658 L 639.032 162.7572 L 643.264 166.4004 L 647.496 164.1372 L 651.728 163.7784 L 655.96 169.9056 L 660.192 170.3748 L 664.424 174.76319999999998 L 668.656 181.7736 L 672.888 177.5922 L 677.12 179.11020000000002 L 681.352 181.1664 L 685.584 175.812 L 689.816 173.0934 L 694.048 169.5399 L 698.28 163.668 L 702.512 163.9716 L 706.744 161.9154 L 710.976 144.1134 L 715.208 139.9734 L 719.44 137.9034 L 723.672 127.33260000000001 L 727.904 133.0044 L 732.136 141.795 L 736.368 141.7743 L 740.6 136.3992 L 744.832 128.3124 L 749.064 137.4204 L 753.296 132.9906 L 757.528 124.7106 L 761.76 126.15960000000001 L 765.992 117.32759999999999 L 770.224 115.09200000000001 L 774.456 116.7618 L 778.688 113.6292 L 782.92 111.13140000000001 L 787.152 108.42660000000001 L 791.384 116.4444 L 795.616 121.7022 L 799.848 106.9086 L 804.08 112.41480000000001 L 808.312 112.7184 L 812.544 114.3468 L 816.776 127.69139999999999 L 821.008 131.4588 L 825.24 134.2602 L 829.472 136.6752 L 833.704 137.6136 L 837.936 128.2296 L 842.168 124.07579999999999 L 846.4 125.01419999999999 L 850.632 130.9896 L 854.864 128.6574 L 859.096 128.9058 L 863.328 121.3572 L 867.56 128.4918 L 871.792 128.685 L 876.024 137.6964 L 880.256 143.2854 L 884.488 139.6836 L 888.72 138.2898 L 892.952 143.6028 L 897.184 142.4436 L 901.416 144.2652 L 905.648 128.616 L 909.88 125.34540000000001 L 914.112 109.0062 L 918.344 107.07419999999999 L 922.576 98.18700000000001 L 926.808 96.33779999999999 L 931.04 99.912 L 935.272 99.95339999999999 L 939.504 117.28620000000001 L 943.736 113.33940000000001 L 947.968 101.83019999999999 L 952.2 108.35069999999999 L 956.432 112.8012 L 960.664 102.9066 L 964.896 97.49700000000001 L 969.128 109.3236 L 973.36 99.912 L 977.592 96.393 L 981.824 112.2354 L 986.056 112.89779999999999 L 990.288 113.8914 L 994.52 116.0718 L 998.752 116.49959999999999 L 1002.984 118.7628 L 1007.216 119.53559999999999 L 1011.448 114.18119999999999 L 1015.68 117.2448 L 1019.912 107.14320000000001 L 1024.144 117.28620000000001 L 1028.376 118.2936 L 1032.608 122.8338 L 1036.84 119.2182 L 1041.072 116.49959999999999 L 1045.304 121.2192 L 1049.536 115.76820000000001 L 1053.768 111.58680000000001 L 1058 74.9616″ data-z-index=”1″ fill=”none” stroke=”#118b4e” stroke-linecap=”round” stroke-linejoin=”round” stroke-width=”2″>
First Solar has been making solar panels for more than two decades. The company is a leader in this space because of its innovative approach to panel manufacturing. Their commitment to producing quality panels that are both cost-effective and energy efficient has earned them a strong reputation in the industry.
The solar market has been difficult for First Solar over the past few years. The company has been affected by lower-priced solar panels coming from China. The company has to reduce its prices in order to remain competitive. The problem has been solved by First Solar with a huge increase in production capacity.
According to the company, it will spend more than $1 billion to increase manufacturing capacity. The company’s long-term strategy is to become a global leader in its industry. Over the next several years, this investment will help the company double its capacity. Ensuring that the company is well-positioned for continued growth and success in the future will be helped by this.
Solar energy is a key element in helping to alleviate the effects of climate change, and First Solar’s panels are part of the equation. The technology used in First Solar’s panels is helping to create a cleaner and more sustainable future. The solar industry is still evolving. Long-term investors have an opportunity to benefit from the fast-growing industry of panels. Demand for solar panels is expected to grow in the years to come.
4. Microsoft (NASDAQ: MSFT)
Price: $246.27 (as of close Feb 28, 2023)
Market Cap: $1.857T
The power to homes and businesses can be knocked out for days at a time during storms, floods, and other major weather events. This plan should include steps on how to remain safe during and after the event, as well as how to prepare your home and business for the situation. With major weather events increasing in some places around the world, many are turning to power generators to keep their lights on. Many families try to keep their homes functioning in the face of extreme weather by using this.
Generac has a line of residential, commercial, and industrial generators. You can rest assured that your home or business is safe and secure with the help of a Generac generator. The company has expanded into the clean energy space with battery storage solutions. They continue to invest in research and development of new products.
In the first half of the year, revenue was up 69% and gross profit was up 73%, both on a year-over-year basis. It is expected that this growth will continue for the rest of the year. The shipment of home standby generators almost doubled in the second quarter, compared to 2020. The company’s profits have increased due to the surge in demand for home generators.
The company is focusing on energy management. Generac helps customers reduce their energy costs and increase the efficiency of their operations. The company recently entered an agreement to purchase Ecobee. The company’s portfolio of connected home products is expected to be expanded significantly by this acquisition.
Talking about the purchase, Generac’s CEO Aaron Jagdfeld said, “[T]he ability to combine Ecobee’s cutting-edge technologies with Generac’s power generation, energy storage, and energy management devices will allow us to create a clean, efficient, and reliable home energy ecosystem that will… help grid operators meet the challenges of an electrical grid under enormous stress by providing solutions to better balance supply and demand.”
The results of investors who have held Generac’s stock have been amazing. Over the years, the stock prices of Generac have increased. Over the past three years, the company’s share price has skyrocketed. The company is a top performer in its sector.
There is no guarantee that the stock will deliver the same results going forward, but it is clear that Generac is tapping into a growing demand for backup power generation. As governments prioritize resilient power systems for critical services, the company is poised to benefit from an increase in infrastructure spending.
6. Ford Motor Co. (NYSE: F)
Price: $12.32 (as of close Mar 1, 2023)
Market Cap: $49.11B
